Apple: History Suggests a Tough Slog Rejoining 4% Club

By Brendan Conway

It turns out that members of this small club have remarkably similar stories once they join, notes the Leuthold Group: After several months, the stock falls out of favor.

Apple spent a “fairly typical” 10 months in the 4% club before falling back to 3.2% of late, the firm notes in a recent research piece. Microsoft (MSFT), General Electric (GE) and Exxon Mobil (XOM) each kept a 4% index weighting for about a year. Cisco Systems’ (CSCO) stay was a much quicker one month.

AP

Once the stock exits, re-entry turns out to be exceedingly tough. “[N]o company has regained admittance after falling this far,” Leuthold reports.

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There are 7 comments

FEBRUARY 12, 2013 9:55 A.M.

rossor wrote:

History and traditional business thinking say Apple should have been bankrupt a long time ago.

Go figure.

FEBRUARY 12, 2013 9:58 A.M.

ALH wrote:

WOW! That's the most important bit of reporting and tidbit of information since Columbus figured out the world wasn't flat.

FEBRUARY 12, 2013 9:59 A.M.

Anonymous wrote:

this was reported on weeks ago. it's even stupider now.

FEBRUARY 12, 2013 10:15 A.M.

jim wrote:

apple is an outlier, have you not learned that yet?

FEBRUARY 12, 2013 10:24 A.M.

DJ wrote:

Let's please remember that all of the above mentioned companies, with the exception of Exxon and Apple, were extremely overpriced as a result of the stock market bubble at that time. GE was manipulating their earnings quarter after quarter, Microsoft was so high Bill Gates was worth over $100 billion dollars, and Cisco was perceived to be the future of the entire Internet before it all blew up.

Exxon on the other hand hit the 4% mark only a few years ago as a result of high oil prices and the perception of future higher prices. This could easily happen again and XOM regain its spot.

Apple has not been anywhere near overpriced throughout its amazing run, at least not in the last 4 years. And it was not even expensive when it reached its high around $700. It took a fall over decreased future expectations as a result of less stellar recent performance. I'd say this is a faulty comparison.

FEBRUARY 12, 2013 11:41 A.M.

techy46 wrote:

Apple consumers and investors need to get a real life and join the rest of us 96 percenters.

FEBRUARY 12, 2013 1:14 P.M.

Bob wrote:

@dj You should write articles, your 1 comment was more informative than 99% of the drivel spewed forth by so-called journalists. Kudos!

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